Alarming data: every day there are more new poor people and the gap between the poverty line is widening

Alarming data: every day there are more new poor people and the gap between the poverty line is widening

In the period 2023-2024 in Argentina, the rates of indigence and poverty by income increased significantly, with a drop in purchasing power in all strata, but much more so in the lowest in absolute and relative terms. These alarming data are drawn from the conclusions of a report by the Catholic University of Argentina, which takes data from Indec on the Evolution of Income Distribution.

In a report called “A foretold end: poorer, poorer, poorer and more unequal. Marks of the past or more future to come?”, the Social Debt Observatory of the faculty reports “a systemic crisis” of the country’s economic policy and there is no evidence of a significant turn or change in the direction of social development.

The deep decline in economic well-being and the regressive distribution of income occur within the framework of a long cycle of exhaustion of the post-convertibility model. After several years of accumulation of failed policies and systemic imbalances, a pandemic in between, and a last year of contained crisis, corrective adjustment policies became brutal, although inevitable.

Both employed and salaried workers’ incomes fell by an average of around 20% in real terms in the first quarter of the year, compared to the same period last year.

Among the employed segment, the poorest stratum lost 24.4% in the first quarter, the middle stratum 23.1% and the high stratum 12.2%. Among wage earners, the dynamic is similar: the lowest stratum saw a decline in income of 24.9%, while the middle stratum saw a decline of 22.6% and the high stratum 15.1%.

As for the evolution of the extreme poverty rate, it is estimated that it has increased from 8.8% to 19.8%. While the poverty rate has increased from 38.8% to 54.6%.

In conclusion, the period is characterized by a generalized impoverishment of households and the population – deterioration of well-being – but differentiated within the social structure. Everyone loses, but the lowest strata lose more in absolute and relative terms. This leads to a deep decline in economic well-being and a more regressive distribution of income.

Fuente: C5N

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